Posted on 09/22/2010 9:57:41 PM PDT by lbryce
Sharply raising the stakes in a dispute over Japan’s detention of a Chinese fishing trawler captain, the Chinese government has placed a trade embargo on all exports to Japan of a crucial category of minerals used in products like hybrid cars, wind turbines and guided missiles.
Chinese customs officials are halting all shipments to Japan of so-called rare earth elements, industry officials said on Thursday morning.
On Tuesday, Prime Minister Wen Jiabao personally called for Japan’s release of the captain, who was detained after his vessel collided with two Japanese coast guard vessels about 40 minutes apart as he tried to fish in waters controlled by Japan but long claimed by China. Mr. Wen threatened unspecified further actions if Japan did not comply.
A Chinese commerce ministry official declined on Thursday to discuss the country’s trade policy on rare earths, saying only that Mr. Wen’s comments remained the Chinese government’s position.
China mines 93 percent of the world’s rare earth minerals, and more than 99 percent of the world’s supply of some of the most prized rare earths, which sell for several hundred dollars a pound.
Dudley Kingsnorth, the executive director of the Industrial Minerals Company of Australia, a rare earth consulting company, said that several executives in the rare earths industry had already expressed worries to him about the export ban. The executives have been told that the initial ban lasts through the end of the month, and that the Chinese government will reassess then whether to extend the ban if the fishing captain still has not been released, Mr. Kingsnorth said.
(Excerpt) Read more at nytimes.com ...
The Defense Department has a separate review under way on whether the United States should develop its own sources of supply for rare earths, which are also used in equipment including rangefinders on the Army’s tanks, sonar systems aboard Navy vessels and the control vanes on the Air Force’s smart bombs.
While Arab states used restrictions on oil exports as a political weapon in 1956, 1967 and 1973, China has refrained until now from using its near monopoly on rare earth elements as a form of leverage on other governments.
Think Tank/military strategists the world over are watching this event very closely, wondering if this signals a new, more strident foreign policy emanating from Peking. China has responded to events in a wholly disproportionate manner flexing its only recently acquired status as emerging super power in a worrisome, alarming new way.
America should watch, study and take heed.
Better to know now how China will behave. There are rare earth elements all over the world. Its just that China can mine them more cheaply, so producers elsewhere have given up production. This is also true in the United States.
One of the dangers of having China purchase the US debt. They literally begin to own us.
Chinese Commies are all about POWER, as are all Commies.
Corporate America are fools for giving Chine the knife that they will use to slit their throats, all for short term profit!
I disagree.
Debt is paper not assets.
There’s an old saying:
If you owe the bank $1,000,000 the bank owns you.
If you owe the bank $100,000,000 you own the bank.
Back in the 1930s, when Japan invaded China and marched on into southeast Asia, the United States ceased all petroleum sales to Japan as a way to punish Japan for its actions.
This did not go over well with the Japanese at all, and directly contributed to their decision to attack Pearl Harbor.
China is essentially doing the same seventy years later, withholding a natural resource Japan needs for its manufacturing industry.
Japan has little in the way of natural resources and must import nearly everything they use in manufacturing processes.
This action on the part of China could end up resulting in an Asian war — with Korea right inbetween the two.
Think anyone will be worrying about our debt?
So many people forget that. They got our debt, we got their stuff - which would someone rather have?
How about neither? Their "stuff" is junk.
Understood, but corporate america has access to federal government legislators. If they so desired, they could have asked for protection via tax law breaks.
I understand that NAFTA, a globalist agenda vehicle, put the kabash on that (if I am informed correctly). But corporate america supported NAFTA to open up global work force for their profits! So I go back to putting blame on the board members of corporate america for the present destruction of US economy.
Sure, sure — block Rare Earth all you want. But Deep Purple? I don’t think so!
Rare Earth was my favorite band
Pro business conservatives and freepers call it free enterprise. I call the stupid policy Wall Street capitalism under democratic government. China claims they found a better version call authoritarian capitalism and argue that the developing world should adopt it. The Chinese claim their version is better. One way to resolve this is look at our ledger. After the 1980’s the US democratic Wall Street capitalism is deep in corporate, gov, trade and personal debt and deficit. The Chinese on the other hand has all the money. Maybe we better review our beliefs and find something better then Wall Street capitalism, let us restore what use to work called free markets (capitalism bound by sense of nation and morality).
” ... Maybe we better review our beliefs and find something better then Wall Street capitalism, let us restore what use to work called free markets (capitalism bound by sense of nation and morality). ... “
I agree 100%, no reservations.
I don’t think the Japanese just wanna celebrate.
The Chinese GOVERNMENT decided to punish Japan by not selling them rare earth metals. A good example of free market capitalism! (snark!)
you all don’t get it. this is a war.
remember what led up to the bombing of pearl harbor? is was americans unwilling to allow japanese access to raw materials...energy to be specific.
China is making a power play. actually this is not their first. one after another. they are threatening to sell american debt. they are buying up japanese debt to run up their currency. now they are blocking japanese imports.
This is not a benign series of events. this is war. they know obama and japan and know they can get away with it. they are thinking once they have all these things in place...a republican congress or presidency will not have the balls to reverse it. and they are probably correct.
To do so would require not less than 4 civil(ish) wars.
1. christian vs muslim in europe
2. mexican vs american in north america
3. capitalist vs communist in europe
4. liberal vs conservative in america
5. pro america vs anti america in europe
6. america vs europe
agreed.
Smo-o-o-oke on the water, a fire in the sky-y-y-y...
This time it’s China that is out to create the East Asia Co-Prosperity Sphere.
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